Book Opener

GiftsA gift is somethingthat is given freelywithout consideration.Gifts can come in theform of money, time, orvaluable items such asclothes, books, orsupplies. Giving gifts isa wonderful wayto enrich the lives ofothers. What kindof gift do you giveregularly?Get InvolvedGive the gift of shelter.Contact organizationslike Habitat forHumanity, which buildshomes for low-incomefamilies, and find outhow you can getinvolved.same as the market value of those goods or services. All that matters isthat the parties agreed freely on the value and the price. Most of thetime, the courts will not even consider whether the value of the considerationis adequate. The reason is that the courts permit individualsto devise their own agreements. The courts are merely concerned withenforcing these agreements. However, there is one exception to this rule.There are times when the courts believe that the consideration in acontract is completely out of line. In such a situation, a contract isdeemed unconscionable . This situation usually occurs when a greatinequality in bargaining power exists between the parties, and the partywith all or most of the power takes advantage of the other party. Thecourt may do one of three things to rectify an unconscionable contract.It may refuse to enforce the contract. It may enforce the contract minusthe unconscionable clause, or it may limit the application of the unconscionableclause.Legality of Consideration The courts require that the considerationinvolved in an agreement be legal. If the consideration is illegal,the contract is invalid. As a result of this requirement, a party cannotagree to do something that he or she does not have the legal right to do.Nor can a party agree to give up something that he or she does not legallyown. In addition, a party cannot promise to stop doing something thatis illegal.Types of ConsiderationGenerally speaking, money, property, and services all qualify asvalid consideration. Other special types of consideration includepromises not to sue and charitable pledges.TYPES OFCONSIDERATIONMost of the time, considerationtakes the formof money or credit.What other forms ofconsideration canyou identify?166 Unit 2: Entering Into Contracts